# Decentralized Monetary Authority (DMA)

**oneTokens** are ICHI designed stablecoins built for cryptocurrency communities. oneTokens keep their value at $1, are purely on-chain, and are supported by a community treasury in each oneToken's native project tokens. They provide the hard peg of centralized stablecoins without sacrificing on decentralization.

ICHI enables any community to deploy a project **Decentralized Monetary Authority (DMA)** to manage their oneToken.

**Table 1: Feature Comparison by Category of Stablecoin**

| Feature                | Algorithmic | Fiat Backed | Crypto Backed | ICHI Stablecoins |
| ---------------------- | ----------- | ----------- | ------------- | ---------------- |
| Mint for Exactly $1    | No          | Yes         | No            | **Yes**          |
| Redeem for Exactly $1  | No          | Yes         | No            | **Yes**          |
| 100% On-Chain Reserves | Yes         | No          | Yes           | **Yes**          |
| Community Treasury     | No          | No          | No            | **Yes**          |
| Liquidation Risk       | No          | No          | Yes           | **No**           |

## How it works

![The DMA Model](/files/-MaerKUTUs2P_89dG2p7)

## **DMA Benefits**

### **Capital Efficient**

While other stablecoins insist that a minter take out a debt position or over collateralize their position 2X or more, ICHI's oneTokens do not. oneTokens enable minters to deposit exactly 1 USD of value into the minter and receive 1 USD in value back. This is never a debt position and does not pose the risk of being liquidated.

### Decentralized

While being stablecoins, oneTokens provide an additional benefit to holders. They provide holders voting power over the project [Community Treasury](/legacy/developers/dma/community-treasury.md) which holds the scarce crypto assets and can be strategically deployed based on community governance.

### Growth Enabling

Existing stablecoins remove value from cryptocurrencies that have to be sold to mint coins (much like selling a stock decreases the value of that stock). ICHI solves this problem and provides the benefits of fiat coins like USDC and USDT without the trade-offs. This is done through minting stablecoins in two parts: 1-part USD hard pegged stablecoin, 1-part community scarce crypto (project token). The scarce crypto is then locked in a Community Treasury, removing it from circulation and applying upward price pressure on the asset.

### **100% on-chain**

Being 100% on-chain, oneTokens provides **transparency** that other stablecoins do not. This means anyone can see the USDC collateral and the coins paid to mint oneTokens on the Ethereum blockchain. Additionally, the entire transaction history of minting, redeeming, and any treasury actions are visible. If the coins or USDC are used by the coin's community to create DeFi (decentralized finance) positions, anyone interested is able to see these transactions and positions in the corresponding smart contracts.


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